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SBUX’s Strategy Blends Online and Offline Campaigns

Starbucks showed a little web savvy this week by announcing their new ad campagin that will leverage offline competitions to increase online awareness and interaction. They are taking a page from DELL’s book, who successfully launched an internet scavanger hunt back in 2007. SBUX is up against the wall since it has little ability to reduce prices as coffee futures recently hit a 7-month high and McCafe is more likely to appeal to cost-conscious coffee drinkers. Instead they are going back to what they know - customer experience and quality. Whereas McDonalds jabbed Starbucks with its “Four Bucks is Dumb” billboard in Seattle, Starbucks is taking the high road with their new message: “If your coffee isn’t perfect, we’ll make it over. If it’s still not perfect, you must not be in a Starbucks.”

Starbucks is spreading the word by leveraging their 1.5 million Facebook fans and 200,000 Twitter followers to hunt for the new ads and post pictures of them on their fb profiles or twitpic for prizes. They are also encouraging their employees to create youtube videos about the brand, with some winners to have their ads rolled out nationally. Though few will actively engage in the competitive aspects of the campaign, Starbucks will benefit from the multiplier effect of those individuals recounting their stories and reaching those they influence. Starbucks knows customer experience, and they are using social media to make the connection with their brand even stronger, however, some of their previous online campaigns were met with limited success (their best being their itunes download giveaway which connects them with one of the best brands of our time).

P.S. Follow @kickbuttcoffee to see how a local Austin coffee shop is reaching out to their followers.

P.P.S. The embedded video is cheesy and long but I always find it interesting to watch Howard Schultz’s passion for his company.

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